Freight body condemns parking fines as tax on business

THE Freight Transport Association has condemned (FTA) the half a billion pound profit generated for councils in England by parking fines.

The FTA said the fines amounted to a tax on business.

The trade association was responding to the publication of figures by the RAC Foundation which show record profits made by English local authorities from parking fines – known as Penalty Charge Notices (PCNs).  The report shows that in 2012-13 a surplus of £594m was made from parking activities.

The association said that as well as the private motorist, the fines were also levied against freight companies supplying vital goods and services to various towns and cities.

Christopher Snelling, the FTA’s Head of Urban Logistics, said: “This isn’t just about parking – it also comes from loading and unloading.  Many of our members are incorrectly fined as authorities are too eager to judge that they are parked when in fact they are in the legitimate process of delivering to local businesses.
 
“Many fines are also issued incorrectly when we had every right to be delivering in that location. These fines amount to a stealth tax on local businesses in these areas.”

The FTA’s own PCN Survey 2012 revealed a 50% leap in the number of penalty charge notices being issued in London, and recorded a rise in costs of deliveries which was directly related to the increase in the number of PCNs issued on the capital’s roads.

“Authorities should not use the money made to support their general revenue as this gives them a perverse incentive not to help companies be able to deliver successfully.  Instead the money should be channelled into improving loading space and parking availability and to improving the quality of enforcement, so that haulage companies are helped to make deliveries safe and efficient, to benefit the local economy,” added Snelling.

The FTA said figures for the current financial year are expected to be even higher. It said budgets submitted to the Government by councils suggest it could stand at about £632m.